(1) The department must contract with a statewide nonprofit organization to either provide services or make grants, or both, to entities pursuant to a contract to foster growth of the state's life science sector and to improve the health and economic well-being of its residents. The statewide nonprofit organization must be a statewide organization established with a primary mission of growing and sustaining the life science ecosystem within the state of Washington by supporting life science entrepreneurs and connecting life science researchers, and biopharmaceutical, medical device, digital health, and health information technology companies to the resources they need to accelerate life science innovation.

(2) The department may also contract with the organization selected under subsection (1) of this section to monitor and collect life science[s] discovery fund grant payback funds.

(3) Grant agreements made pursuant to subsection (1) of this section must specify deliverables to be provided by the recipient under the grant. The nonprofit organization selected pursuant to subsection (1) of this section must evaluate requests for funding by reference to factors such as: (a) The quality of the proposed research or project; (b) its potential to improve health outcomes, with particular attention to the likelihood that it will also lower health care costs, provide a substitute for a more costly diagnostic or treatment modality, or offer a breakthrough treatment for a particular disease or condition; (c) the potential for leveraging additional funding; (d) the potential to provide health care benefits or a benefit to human learning and development; (e) the potential to stimulate the health care delivery, biomedical manufacturing, and life sciences related employment in the state; (f) the ability to provide critical life science infrastructure; (g) the potential for attracting new investment or catalytic partnerships in the life sciences; (h) the geographic diversity of the grantees within Washington; and (i) evidence of public and private collaboration.

(4) Before conducting a significant grant competition, the nonprofit organization selected under subsection (1) of this section must adopt policies and procedures to facilitate the orderly process of grant application, review, and reward; and may create one or more advisory boards composed of scientists, industrialists, and others familiar with life sciences research to assist in grant evaluation.